My sincerest apologies for the lack of formal response Dale. I thought I answered that in RadarView over the past week.
While I truly try not to yell "BUY BUY BUY BUY" from the roof tops, the news story you linked to was part of the foundation I laid out for why the recovery was safely underway and why WFR was a hot stock to acquire. Even as we were puzzled about the report it was going to be sold off by VEBA (which was incorrect according to the following day's interview with WFR CEO), we were shouting that this was an undiscovered gem.
We have been buying WFR from $10 (yes, we admit to that since we have nothing to hide) all the way down to $6 and then exercised all of our Rights in the Offering ($6.88), and then bought more as it got to $6.25 before it turned to the positive. WFR is a critical building block for all IC production. As capacity shores up and fab utilization rises, WFR experiences a step function increase in orders, globally. I know of no other supplier to the IC industry that is so dramatically affected by the capacity situation in IC fabrication facilities.
My only regret is not answering this question in a more timely fashion since it would have served my purposes much better. However, as many of my readers are aware, WFR was and remains a great buy under $10 since we have no doubt that it could reach its historic IPO levels if this recovery is sustainable.
now that the information is public about the rising utilization of the foundry fabs and the tight cpacity that is starting to show up across the industry, we know that WFR will prosper. It now appears that VEBA saw this happening and used the Private Placement and Rights Offering as their vehicles to increase their shareholdings to cash in on the monumental growth potential going forward.
As far as TSM is concerned, we have rotated TSM into our mini-universe of stocks and have been buyers of this stock. Admittedly, we chose to enter TSM on the left side of the U shaped curve as it was declining and contined to buy as it hit bottom and are still buyers as it works its way out of its bottom formation.
TSM will be increasing capacity from almost every angle possible from ramping up existing facilities, retrofitting-upgrading others, and building new fabs. As we go through this recovery phase, the foundries will lead the way to prosperity. This is even more true as we watch the number of traditional companies move to the Fabless Model. MOT and CRUS are the two that come to mind regarding the oncreased use of foundries at the expense of reducing their in-house or joint venture IC manufacturing strategies.
Again sorry for the delay. we were too busy making money this past week for the RadarView subscribers and too busy putting out some lengthy informative commentaries.
Andrew Vance
RadarView Newsletter
avance@radarview.com
PS: old email addresses still work, but we have registered our domain name and our mail server is up. Hopefully a modes website will appear over the weekend.<GG> |
